Business confidence in the South West is at its lowest level in five years.
This is according to research produced by the Institute of Chartered Accountants in England and Wales (ICAEW).
Stephen Ibbotson, ICAEW Director of Business, said that Brexit may have affected the confidence of business owners.
He said: "In order for businesses in the region to start building confidence, Government should focus on negotiating the most inclusive Brexit deal for business of all shapes and sizes across the UK.”
He added that inflation and increasing prices would have an impact on both consumers and businesses alike.
“2017 is likely to be a year of counting the pounds and pennies for consumers in the region," he said.
However, it's not all bad news.
According to the director, the South West is likely to benefit from a rise in "staycationers", people who choose to holiday in England who may be turned off travelling abroad because of the weak pound.
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